CRH plc releases Interim Management Statement

CRH plc has released its Interim Management Statement for the January – April 2012, revealing a 2% y/y increase in sales and a fall in EBITDA.

Europe

Due to the extreme weather conditions at the start of the year, European sales fell by 6% in January – February compared to the same period in 2011, although this picked up slightly in subsequent months, with sales to the end of April dropping 4% y/y. Sales levels for Europe Materials were slightly higher than the previous year. Although the cold snap negatively impacted operations in Poland, Switzerland, Benelux and Turkey, sales volumes in Poland have picked up. The Ukraine demonstrated particularly strong growth levels. Sales volumes for Europe Products dropped 5% y/y, whilst CRH Distribution businesses saw sales fall 6% y/y.

America

In contrast, mild weather and increased economic activity in the United States had a positive impact on CRH plc’s sales volumes in the region. Sales levels of aggregates and ready-mixed concrete were up 18% and 13% y/y, respectively. Sales volumes for Americas Products also increased by 12%.

Development and outlook

CRH has completed 13 acquisitions and investments since the start of the year, at a total cost of €230 million. It has been reported that the company plans to increase its 26% share in Chinese cement manufacturer Yatai in a bid to expand into emerging markets. Conciliatory talks with striking workers at the company’s Irish cement plants are due to commence today.

CRH has a positive outlook for the rest of the year, despite a cautious approach to European markets. It predicts y/y growth on the back of increasingly favourable conditions in the US.

Adapted from press release and edited from various sources by Louise Fordham.

Read the article online at: https://www.worldcement.com/europe-cis/10052012/crh_cement_results_financial_europe_america/